January 4, 2001

Members Present: Chairman Hollings (D-SC), McCain (R-AZ), Stevens (R-AK), Burns (R-MT), Hutchison (R-TX), Snowe (R-ME), Brownback (R-KS), Gramm (R-TX), Inouye (D-HI), Rockefeller (D-WV),  Kerry (D-MA), Dorgan (D-ND), Wyden (D-OR) and Cleland (D-GA).

Witness:  Donald Evans, Secretary-Designate, Department of Commerce

Senator McCain welcomed and congratulated Mr. Evans and his family.  Senator McCain said that he is a firm believer in free and open competition across international borders and that free trade benefits all citizens.  He supports a constitutional census plan that accurately counts every person.  Traditional counting methods do not provide an accurate count of the population in his homestate of Arizona and citizens of Arizona have suffered as a result.  He believes it is important that missions of the Commerce Department remain politically neutral.

Senator Kerry said that he has no doubt of Mr. Evans's capacity to perform one of the most important functions of the Commerce Department--to be a champion of American business and to open markets.  He believes the enforcement of the trade laws is a major issue.  Highlighted his concerns about the recent census undercount and the protection of U.S. fisheries.

Senator Burns stated he wanted to point out a small, but important agency-- NIST, that NIST contributes to the commerce of this country and facilitates new technologies.

Senator Rockefeller stated his support for Mr. Evans, spoke on his concerns of the steel industry crisis, the digital divide (NTIA has done a good job), the Technology Opportunities Program (TOPS), the EPSCOT program, spectrum management strategy.  He added the Critical Infrastructure Assurance Office is underfunded and understaffed.

Senator Dorgan stated his support for Mr. Evans and spoke on the issues of technology, third generation wireless, trade and trade deficit.  We must aggressively enforce trade agreements.

Senator Cleland stated that export promotion and the enforcement of trade laws are very important to the economy of Georgia.  NOAA and the National Weather Service are vital to the livelihood of the farmers, sailors and aviators of Georgia.

Senator Snowe believes Mr. Evans will be a tremendous asset to the Commerce Department.  She stated her concerns regarding unfair trade practices, that the Federal trade deficit is not desirable for the longterm, that we must be vigilant with China's compliance and enforcement of the WTO agreement. She encouraged him to fill the position of Deputy Secretary to monitor China's compliance.  Nation's fisheries are invaluable resources--value of resources increased more than 11 percent last year.  Spoke on her concerns about the fishing industry and about holding regulatory agencies accountable for their decisions and that there is good science to back up their regulatory decisions.  Spoke about the importance of the Economic Development Administration and the Technology Opportunity Program and their contributions in revitalizing economic growth in the country.

Senator Inouye supports Mr. Evans and spoke on the importance of NOAA's work to his island State of Hawaii.  Intends to submit questions on NOAA and Census.

Senator Gramm introduced Mr. Evans and strongly recommended that his nomination  be reported favorably by the Committee and confirmed by the Senate.  Mr. Evans' many accomplishments include serving with distinction as Chairman of the Board of Regents at the Texas University, with a $6B budget and employing 80,000 staff  members.  Philanthropic activities include providing services to 10,000 native American children in America.  Mr. Evans is a graduate of the University of Texas in Mechanical Engineering and is an alumni of the Business School.

Senator Hutchison joined in introducing Mr. Evans and stated he has been "cycle tested" and will understand what businesses are going through and how to level out the economic peaks and valleys.  While at the University of Texas as Chairman of the Board of Regents, Mr. Evans focused on increasing opportunities for young researchers at the University and she believes that this will be an important priority that he will bring to the Commerce Department.

Mr. Evans stated that he is honored that President-elect Bush would nominate him for this role and if confirmed as Secretary, his mission for the Department of Commerce will be to foster a marketplace where ideas and energy can thrive and where the entrepreneurial spirit will flourish.  His objective will be to direct the Department's great and diverse resources to the common cause of fostering economic strength at home and abroad.  Nation's greatest export is its democratic principles.  Whether in seeking agreement on rules for e-commerce or the elimination of trade-distoring subsidies, we want to foster a world of private, not government competition.  There will be no more important role for the Commerce Department than to partner with the U.S. Trade Representative to ensure that our trade agreements provide meaningful opportunities for exports of American goods and services.  Equally important is the proper stewardship of our oceans, fisheries and marine environment.  Fostering America's technological leadership will be a central concern of the Commerce Department.  The nation's security and prosperity rely on the promise of effective intellectual property protection.  Maximizing competitive opportunity also results from the establishment of appropriate industrial standards, from the exploitation of new technologies and new means of doing business and from the predictable commonsense administration of controls on exports of strategically important goods.

Chairman Hollings, in referring to job losses in his state due to trade agreements, said that we need to change the mindset from "foreign trade as foreign aid."  We need to move beyond just enforcement.  In response to a question from Senator McCain about the non-political selection of delegates on trade missions, Mr. Evans said he would leave those decisions to career employees and submit more detailed procedures within 30 days.  Senator Hutchison spoke about the issues of creating an energy policy and the possibility of establishing a Technology Export Council.  In answer to Senator Kerry's question on whether Mr. Evans would allow the release of controversial statistical sampling data to be used for redistricting, if bureau experts deem the adjusted numbers most accurate, Mr. Evans replied that he has not received the expert recommendation as yet and he is working to clarify whether he or the Census Bureau director could make that decision.  Mr. Evans promised to be very open and straightforward about his decisionmaking.  To Senator Kerry's question on climate change research, Mr. Evans said that he is totally committed to the continuation of research of this issue and that Secretary Daley mentioned that he had probably the only Nobel Prize winner inside government researching these important issues.  To Senator Rockefeller's comments on saving the U.S. steel industry, Mr. Evans said that he is disturbed when he hears that laws are not being enforced and pledged to look at section 201 of the 1974 Trade Act and that he will pursue an active dialogue with the Committee.   Senator Cleland spoke about growing our own high-tech workers and commended the Technology Opportunity Program in helping to connect rural America and expand economic development.  Chairman Hollings said that Chairman McCain may decide on a further hearing and that he hopes for confirmation during the first week after inauguration.
Prepared by:  Relda Nacos, NIST, 975-3080.

REPORT REFLECTS AN INDIVIDUAL'S PERCEPTION OF WHAT TRANSPIRED DURING THE HEARING.  FOR OFFICIAL INFORMATION, CONSULT THE COMMITTEE REPORT.
 

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